Ripple Sued Again For Selling XRP

Ripple Sued Again For Selling XRP



Ripple Sued Again For Selling XRP

  • Bitcoin Manipulation Abatement Sues Ripple And Its Director Brad Garlinghouse

  • The lawsuit alleges the XRP token was promoted and traded in the market as a security.

  • This is not the first lawsuit filed against a company with similar claims..

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The strangely named Bitcoin Manipulation Abatement joins the army of plaintiffs accusing Ripple of illegally selling securities.

Last Friday, Bitcoin Manipulation Abatement filed a lawsuit in North Carolina District Court, accusing Ripple and its founder, Brad Garlinghouse, of violating securities law and misleading investors. Plaintiffs argue that Ripple was created solely to enrich the founders of the company and those close to them, while it repeatedly misled investors with false statements about XRP.

Ripple Sued Again For Selling XRP

Old song in the old way

Lawsuits with allegations of illegal sale of securities have long been common for Ripple.

Investors who lost money in the XRP crash argue that the company should have registered the token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More as a security in the Securities and Exchange Commission (SEC). But she did not, and did not provide potential buyers with all the necessary documents and disclosures, as required by the securities law..

Ripple lawsuits claim XRP buyers have been fooled by promises of profits. In addition, they were told that XRP is an asset with long-term growth potential..

The new lawsuit is not original and generally repeats the claims set out in all previous charges against Ripple.

“The Defendants have made huge profits selling XRP to the general public. Collectively, they sold $ 1.1 billion in XRP to retail clients in exchange for legal payment cryptocurrencies (most often Bitcoin and Ethereum), ”the lawsuit says..

Further, the plaintiffs argue that the well-being of Ripple depends on the promotion of XRP, however, investors bought the coin in the expectation that its value would grow as a result of the company’s activities..

Cryptocurrency with features

Unlike decentralized cryptocurrencies such as Bitcoin and Ethereum, which are mined by a decentralized network of miners, all 100 billion XRP was created centrally in 2013..

Ripple Sued Again For Selling XRP

At the time of issue, 20% of the total XRP volume was distributed among the founders, while the remaining 80% remained in Ripple accounts. Since then, the company has been releasing part of the coins from the deposit account into circulation every month. Additionally, Ripple has sold XRP on cryptocurrency exchanges. Last year the company abandoned this practice, but the project is gradually starting to lose supporters..

Who is behind Bitcoin Manipulation Abatement

The plaintiff is a certain company Bitcoin Manipulation Abatement LLC, about which there is practically no information on the Internet. The lawsuit was brought by attorney Pavel Pogodin through his company, Consensus Law, located in Isla Verde, Puerto Rico. According to data from the register of companies, it was founded in March 2019 by Pogodin himself, who appears there as a “resident agent”.

According to Stephen Pally, partner at law firm Anderson Kill, it appears that the entire company was created to file this lawsuit..

Interestingly, Bitcoin Manipulation Abatement is also featured as a plaintiff in the case against the FTX cryptocurrency derivatives exchange. A class action lawsuit against the exchange was filed last November, but the court dismissed it.

Do you think XRP is a security? What happens if the court decides in favor of the plaintiff? Share your opinion in the comments.


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